Mozambique is planning to repatriate electricity currently exported to South Africa through the third-biggest hydropower producer in Africa, Hidroelectrica de Cahora Bassa (HCB) dam.

This landmark decision would be effective in 2030 when the current power purchase agreement expires. According to an unreleased document, the “Strategy for Energy Transition in Mozambique until 2050,” the government suggests that this contract with Eskom may not be renewed.

The rationale behind this shift lies in Mozambique's own burgeoning energy demands. The country's rapid economic growth and urbanization necessitate a reliable and accessible power supply. Of HCB’s total production, currently, only 300 MW are supplied to Mozambique’s electricity company.

If the contract with Eskom is not renewed, Mozambique will cease the sale of 1150 MW of power to Eskom for the first time since 1979. Previous disruptions to the power supply from the dam have worsened power cuts in South Africa.

The document also lays out ambitious plans for the future of Mozambique's hydropower capacity, which includes the possibility of re-establishing the export arrangement at a later date, “In the period from 2030 to 2040, a further nine gigawatts of new hydroelectric capacity will be added, of which up to three gigawatts could be reserved for export depending on the growth in national energy demands, which will be prioritized,” the document read.